Find Out How Your Credit Score is Calculated So You Can Create the Car Payment that Works for You

Here at Royal Moore Mazda our goal is to ensure that when it comes to helping you find the right plan to pay for your new or used vehicle that you find in our showroom serving Hillsboro along with the Willamette Valley and the greater pacific northwest, we want to make sure you have a full understanding of what goes into securing an auto loan or getting a standout lease. Your credit score plays its part, and for many people, they might not know how their credit score is calculated, and we're here to help you break it down so you have a better understanding and it can help you in approaching your next vehicle purchase with us.

Your credit score is also known as a FICO score and it is segmented into five categories that all are weighed differently to come up with a composite score on a 300 to 850 range. It goes as follows:

  • 35% Payment History: any lender is going to want to know that you've paid off on past credit accounts, so any lender like a bank or credit union can determine how much risk it will take, and the amount it is willing to approve for you.
  • 30% Amounts Owed: If you have money owed on credit accounts from a credit card, another car payment, student loans and others that doesn't make you high-risk, it's just a factor in the consideration. If you're using lots of credit however, that might be interpreted as overextension to a lender.
  • 15% Length of Credit History: If you've owned a vehicle before, had credit cards, student loans, or taken out personal loans, home loans, mortgages, this all factors in as well. The better your history is with payment, the better off your credit score and lending opportunities will be. For people who don't have a lending history like first-time or young car drivers, you don't have to worry too much, but you might need a co-signer depending on the circumstances.
  • 10% Credit Mix and New Credit: The final part of the equation considers all the credit mix that you have on your current credit cards, mortgage, loans and more, while also evaluating how you'll be able to handle taking on new credit.

These factors all come into play and then give you a score, ranging from the 300-669 range which is low to fair, while 670 and up is considered good to exceptional credit at 850, which is very rare. We'll help you find what works for you and your budget in our new and used lineup based on your credit and what you can get approved for when it comes to financing. Contact us today to get started soon!